The U.S. economy will be operating at “full employment” by the end of this year as the unemployment rate drops to 5%, said John Williams, president of the Federal Reserve Bank of San Francisco, on Sunday.

Improving employment conditions in Japan have led to higher wages, a crucial component to overcoming decades of deflation. But they have also posed daunting challenges to some businesses.

A majority of Bank of Japan policy board members see a tightening labor market as giving the central bank a tailwind in its goal to reach its 2.0% inflation target in the face of slowing economic growth. But some are concerned that rising labor costs could eat into profits, forcing smaller firms to scale back or even shutter operations, people familiar with the central bank’s thinking say. Read More »

–College Costs:Ronan Keenan examines the soaring cost of college in the U.S. “Education is more important than ever, with the comparative return on a degree still high relative to those without college qualifications. But to lower the costs of tuition, government support must be reduced. Lending institutions are too lax in giving out credit, knowing that the taxpayer will support 100% of defaulted loans. Without that firm safety net, lenders will be more discerning about borrowers’ fields of study; the expected income for a humanities graduate is not the same as an engineer. Less student aid will also make colleges think twice about their excesses. Moreover, loans should not be an entitlement. There are too many colleges offering too many places to students.” Read More »

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